The average cost for full coverage in Florida is $1,143 per year. This is why Florida is ranked the 5th costliest state to buy auto insurance

Florida has a very diverse population. From young working professionals and college students to middle-class families and retired snowbirds, there is something for everyone in The Sunshine State. With a beautiful tropical climate on the coast and quiet towns in mainland Florida, you will surely love what the peninsula has to offer.

If you're planning for an upcoming move to Florida, it's important to learn about the auto insurance laws in the state before you start exploring the land.

Florida Operates Under Its Own Unique No-Fault System

There are two types of insurance systems in the United States — fault-based systems and no-fault systems.

A fault-based insurance system uses fault to determine which insurance company will pay for injury claims. A no-fault insurance system attempts to reduce the use of the court system to settle claims by requiring all drivers to carry their own medical coverage.

In the state of Florida, you will make claims for your medical bills against your own insurance policy. You can't hold the other driver liable for your injuries, even if they were at fault, in minor crashes. The only time that you have the right to sue for injury claims after an auto accident is when the serious injury threshold is met.

What is Florida's serious injury threshold?

The definition of serious injury under the law is very vague. According to the vehicle code, injured parties are eligible to file a liability claim against the at-fault driver when they suffer one the following:

Permanent injury

Disfigurement

Significant and permanent scarring

Death

How much coverage are required by law to carry in Florida?

If you own a vehicle that's registered to be operated in Florida, you must carry your own personal auto policy that meets the state's insurance requirements.

Since it is a no-fault state, you must carry coverage to pay for your own medical expenses and the cost of repair when you damage someone else's property. Here's a breakdown of the coverage requirements:

Personal Injury Protection (PIP) - $10,000 per person

Property Damage Liability (PDL) - $10,000 per accident

What does Personal Injury Protection pay for?

What is and isn't covered under Personal Injury Protection varies by state. Since this is first-party coverage that pays after any auto-related accident, it's good to know what you are paying for when you're complying with no-fault laws.

Who does your Personal Injury Protection cover?

If you have an accident in the state of Florida, your coverage will pay for the medical bills incurred by you, your spouse, household relatives, passengers in your car who don't own their own vehicles, and people who borrow your car with your permission. Only you and your relatives in the home are covered outside of Florida.

Add Bodily Injury Liability to Your Policy

Florida is one of the few states where Bodily Injury Liability (BIL) coverage is considered optional. You aren't required by law to carry BIL but it's still a coverage that you should consider purchasing to protect your assets in the event of a serious accident.

Since injured parties can file a liability claim against you when they are scarred, permanently injured, or disfigured, having Bodily Injury is important. Without the coverage, you not only have to pay for damages and settlements out-of-pocket, you also have to pay for your own court costs and legal fees.

Other Types of Coverage Available in Florida

Coverage requirements do offer you some protection, but a comprehensive policy is one that includes more than just what's required by law.

In the state of Florida, all carriers must offer their applicants the option to add optional forms of coverage to their policies for additional premiums. Some of your options include:

Comprehensive - pays for repairs to your vehicle after it's damaged in a fire, theft, vandalism, flood, or encounter with an animal

Collision - pays for repairs to your vehicle after you collide with a car, crash into an object, or overturn your car

Uninsured Motorist Protection - pays for your medical bills when you suffer serious injury in an accident with someone who doesn't have insurance

How to Choose the Right Auto Insurance Company

One of the first things that you should do when you're shopping for Florida car insurance is to research the carriers. Not all licensed providers are created equal and doing business with a subpar company can put you at risk.

If you want quick claims payments and good service, here are some tips:

Check the company's licensing status through the Office of Insurance Regulation. The office can't protect your rights as a consumer if you don't buy coverage from a licensed company

Find companies that offer multiple lines of insurance so that you can save money and enjoy added convenience

Look up the company's consumer satisfaction ratings through an unbiased source like JD Power and Associates

How to Save Money on Your Premiums

You don't automatically have to choose a basic insurance policy to save money. It's best to take advantage of discounts and preferred rating classes when you can. Here are some tips to help you keep your insurance costs down as you solicit quotes:

Give the insurer information on your insurance history to receive prior insurance discounts

Make sure to consider your licensing experience from other states and countries when you are asked how long you have been licensed

Raise your deductibles for comprehensive and collision if they are low

Assign risky drivers to the least expensive vehicle on the policy

Remove physical damage coverage if the car doesn't retain much value

Buy coverage for multiple cars through the same insurer

Complete driver training and traffic school

If you are over 55, ask where you can take Mature Driver training for a discount

The most effective way to save money on your insurance rates in Florida is to shop around. Every company has their own rate system and some systems are more favorable than others. If you want to compare rates quickly, use an online quoting tool and get instant quotes so that you can make an informed buying decision.